> and the main pressure against that is for companies or people to leave.
Has there been any serious research in this area that supports that conclusion. My impression, which is completely uninformed I admit, is that we often talk about companies leaving due to high tax burdens, but that it rarely happens. It's a politically signal, more than a factual systemic driver.
Sure, a bunch of companies have relocated to tax havens, but we're not going to solve that by regressing to a 2% universal tax rate.
A country recognizes that the rate of company creation has gone done (or some similar metric). They identify the tax rate as a reason for this. They want the tax rate to be lower to ameliorate this. They leave the agreement.
Now presumably there are penalties or such in place for this type of agreement, so it would need to be weighed as onerous enough to accept any such penalties. If it is just one country that feels this way then it might be a non-starter, but if the global minimum tax gets to a point where many countries feel this way, it would probably be viable to coordinate to leave the agreement all at once, with the remainers having little power at that point.
Citation needed, corporate taxes have been going down for decades.
> companies or people to leave.
"We can't ever tax anyone because else they would just leave; ergo nothing can or should be done about rampant inequality" is not only false, it is extremely dangerous and accelerates the fall of our democracies.
Yes and that is bad, because cartels are bad. Competition between political systems is good, for much the same reason that competition between companies is good.
How does it hurt investment? Those tiny nations are only helping eliminate an inefficient form of taxation. The main problem is that only multinationals can make use of it.
Hiding huge amounts of money in tax havens is actively detrimental to the economy. I believe the goal of any economy should be to better our lives, not hoard wealth and sit on it.
Without taxation, the infrastructures needed to maintain a healthy economy are unsustainable. We need to ensure that what companies benefit from public services is taken back so it can be reinvested.
Oh please, as far as USA goes, taxes went down especially for companies and rich. And the country is in the process of creating new massive deficit just by a massive tax cut.
Has there been any serious research in this area that supports that conclusion. My impression, which is completely uninformed I admit, is that we often talk about companies leaving due to high tax burdens, but that it rarely happens. It's a politically signal, more than a factual systemic driver.
Sure, a bunch of companies have relocated to tax havens, but we're not going to solve that by regressing to a 2% universal tax rate.